Having made great strides in the dress shoe industry with the introduction of pieces like the LunarGrand, as well as huge moves throughout the soccer world in recent years, Nike announced earlier today that it is planning to divest of both Cole Haan and Umbro.
Beaverton, Ore., (May 31, 2012) – NIKE, Inc. (NYSE: NKE) today announced its intention to divest of two of its wholly-owned affiliate brands – Cole Haan and Umbro – to sharpen its focus on driving growth in the NIKE, Jordan, Converse and Hurley brands.
“We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the NIKE brand.” said Mark Parker, President & CEO of NIKE, Inc. “We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the NIKE Brand.”
“Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for NIKE, Inc. to continue to drive sustainable, profitable growth for our shareholders.”
Cole Haan, which specializes in casual and dress leather footwear and bags, was acquired by NIKE, Inc. in 1988. The company is based in New York. Umbro is a football (soccer) specialist brand based in Manchester, UK, acquired by NIKE, Inc. in 2008. The process of divesting of these two businesses will begin immediately, and is expected to be complete by the end of NIKE, Inc.’s fiscal 2013 (May 31, 2013).